Indonesia's Economy Is Considered Stable Amid Donald Trump's Victory Sentiment

JAKARTA - Mirae Asset Sekuritas Indonesia analyst Rizkia Darmawan said the Indonesian economy still shows stability amid the sentiment of Donald Trump's victory in the 2024 Presidential Election (US).

In a media briefing in Jakarta, Tuesday, November 12, Darma explained, Donald Trump's victory in the US Presidential Election triggered a risk avoidance sentiment (risk-off) which caused increased fluctuations in the financial market.

This will have a considerable impact on determining policy directions in Indonesia, both monetary policy, and government policies which include fiscal policies and policies in the field of international trade.

"Meski demikian, perekonomian Indonesia menunjukkan stabilitas dan ketahanan meskipun berada dalam rezim suku bunga yang tinggi," kata Darma, dikutip dari Antara.

He said that the purchasing power of Indonesians who are still resilient is one of Indonesia's economic strengths. Therefore, if the flow of foreign funds (foreign outflow) subsides, the Indonesian market will benefit.

In terms of commodities, Darma said, the commodity market in Indonesia faces varying challenges and opportunities in the fourth quarter of 2024. He predicts that in the future commodity prices will fluctuate more compared to the previous one because it depends more on global sentiment.

According to him, the high fluctuation can be used by market participants for short-term transactions at commodity prices and shares of companies whose businesses are related to commodities.

He assessed that the decline in global commodity prices had also had a direct impact on the energy and basic metal sectors, especially on crude oil prices and some chemicals.

Certain metal sectors, such as the basic metals used in the electronics and automotive industries, are still experiencing stable growth along with strong industrial demand, Darma explained.

In particular, crude oil prices fluctuate due to global market uncertainty and US economic policy which is expected to have an impact on energy price movements.

He estimates that oil prices will be under pressure until the end of the year, which will also have an impact on revenue from the domestic energy sector. On the other hand, basic metals such as nickel and copper continue to show positive potential given its strategic role in battery production for electric vehicles, especially in Southeast Asia.